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Welcome to Ottawa Playbook. Let's get into it. In today's edition: → Bank of Canada Governor TIFF MACKLEM defends his monetary policy moves at the Commons finance committee. → The carbon tax debate is set to heat up after the Liberals backtracked on a sticking point for Atlantic Canada. → Foreign Affairs Minister MÉLANIE JOLY is about to finally make her big foreign policy speech. |  | THREE THINGS WE'RE WATCHING | | |  "Why should Canadians trust you?" Governor Tiff Macklem was asked during an interview last week. Today at FINA, he's going to get it worse. | AFP via Getty Images | MONEY FIGHT — Bank of Canada Governor TIFF MACKLEM walks into the lion’s den late this afternoon. The head of the central bank will face politicians at the Commons finance committee after his Oct.-25 update where he held rates steady. One friendly sounding round on the agenda is labeled policy decisions and market forces that caused “increases in the cost of buying or renting a home.” — Calls for his head: Conservative Leader PIERRE POILIEVRE first called on Macklem to step down during the party’s leadership race — which makes Playbook curious if he’ll pull a JAGMEET SINGH and show up at committee to throw some punches personally. Premiers DOUG FORD, DAVID EBY and ANDREW FUREY ganged up on the bank governor over the summer months, calling for a halt to rate hikes, warning it’s doing damage to the economy. Not usually an office under full-on assault by politicians, Macklem’s kinda noticed the heat turned up. — Accountability preview: In an interview last week on CBC Radio’s “The Current,” host MATT GALLOWAYplayed a clip of Macklem’s own words back at him from July 2020, when he said Canadians could be confident interest rates would remain low for a “long time.” Galloway paired it with tough follow-ups: “What would you say to people who believed you?” and then later, “Why should Canadians trust you?” Macklem’s answer: The plan to stabilize prices “is working.” “We know higher interest rates are squeezing some Canadians. I don’t feel good about that. But the alternative — just living with inflation, letting your paycheck buying power get eroded year after year — that’s worse.” — What to watch for: Macklem made points usable by both sides of the aisle during his rate-decision presser, but landed an unusually strong blow on fiscal spending: “It's gonna be easier to get inflation down if monetary and fiscal policy are rowing in the same direction.” The comment risks him landing among the ranks of former Liberal finance minister JOHN MANLEY, whose name appears in QP on a regular basis. You all know the quote: something, something,one foot on the gas ... So, Macklem’s already near the limits on wading into fiscal debate, though he’ll have to defend his monetary decisions dating back to the strange days of the pandemic. But as KEVIN CARMICHAEL wrote for The Logic, that Macklem responded to a question on fiscal policy suggests he is “tired of being a political punching bag” and has made clear he’s prepared to hit back. — Check the score: Inflation: 3.8 percent. Inflation target: 2 percent. Key rate: 5 percent. Prospect of future hikes: door’s open. Next rate decision: Dec. 6, last of the year. — Not over ‘till it’s over: The two hour or so appointment isn’t his only stop in Parliament this week: Macklem and his senior deputy CAROLYN ROGERS also appear before the Senate banking committee on Wednesday. | | | | A message from Google Canada: We help defend critical infrastructure in Canada.
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STRATEGIC OPENING — The Liberals are in for a rough week in the Commons, after the party flip-flopped on part of its signature environmental policy when the PM announced a three-year pause on the carbon tax for home heating oil.
The party had rejected that prospect — a major pain point for the Liberals in Atlantic Canada —just days before the sudden backtrack. — Quickly flanked: Poilievre framed the move as a government in “full panic mode” on Friday and immediately set to start pressuring the Liberals on the sore spot. His party offered “full cooperation” to fast-track an “emergency bill to axe the carbon tax on all forms of heat” ahead of winter, Global’s DAVID AKINreported Sunday. — Provincial pile on: That’s after Ontario Premier DOUG FORD, Saskatchewan Premier SCOTT MOE, and Alberta Premier DANIELLE SMITH (in unison with Alberta’s oppo leader RACHEL NOTLEY) all chimed in asking for the same extension to their provinces for natural gas heating. — Spin goes sputter: On the Sunday talk circuit, Rural Economic Development Minister GUDIE HUTCHINGS turned heads when she appeared on CTV’s Question Period and told host VASSY KAPELOS that “perhaps they need to elect more Liberals in the Prairies so that we can have that conversation as well.”Here’s the clip. Alberta Premier Smithalso provided a counter-dunk by attributing something CTV wrote to Hutchings. — End-of-days counter: 10 – the number of times Liberal MP KODY BLOIS dropped “at the end of the day” on CBC’s The House when explaining the policy backtrack. — Hard sell in tough times: Pollster BRUCE ANDERSONtweeted that after eight years of Team Trudeau expounding on the benefits of carbon pricing, polling shows “many people still don't understand how it helps change behavior, and how rebates mitigate impact on the cost of living.” — Related reading: CBC’s AARON WHERRY on whether the prime minister’s move undermined the policy — or saved it. |  "Diplomacy is best when it's kept private," Foreign Minister Mélanie Joly has said. | Getty Images | JOLY’S ROADMAP — Foreign Affairs Minister MÉLANIE JOLY’s speech today is such a big deal internally that it was postponed from the original Oct. 11 date to buy more time. — What we know: The delay of the speech had nothing to do with the surprise Hamas attacks on Oct. 7. Playbook got a heads-up from the minister’s office on Oct. 6 that the event was going to be rescheduled — so, save the commute to the empty venue. The Economic Club of Canada in Toronto plays host to today’s English speech. Joly will deliver the French version at the Montreal Council of Foreign Relations on Wednesday, examining Canada’s role as a liberal democracy in a “fractured world.” — What to expect: Anecdotes reflecting Joly’s recent whirlwind tour in and around the Middle East that included stops in Greece, a day trip in Israel, time in Jordan, the Cairo Peace Summit in Egypt and visits in the United Arab Emirates and Armenia. Maybe some inspiration from U.S. national security adviser JAKE SULLIVAN’s meditation on America’s foreign policy that backloaded the Biden administration's sightlines on China. Any rumination by Joly on China could be seen as laying groundwork in case the prime minister crosses paths with Chinese President XI JINPING at the APEC summit in San Francisco next month. — Talking-point watch: The English Q&A will be moderated by Prince’s Trust of Canada CEO FARAH MOHAMED, giving Joly the chance to delve into the nitty-gritty of Canadian power — or hit Canadian foreign minister status-quo stride by avoiding answering any direct questions aimed at leaders navigating an increasingly complex geopolitical world. — Case-in-point: Joly ducked when asked by the Toronto Star’s TONDA MACCHARLES to confirm reports she went to Washington for a secret meeting with India’s External Affairs Minister SUBRAHMANYAM JAISHANKAR. “I believe so much in diplomacy that I really think that diplomacy is best when it's kept private,” Joly said, and declined to describe the tenor of talks with India Jaishankar has at least stated the obvious: Relations are currently “difficult.” — Count ‘em up: It’s been 368 days since U.S. Secretary of State ANTONY BLINKEN visited Ottawa and Joly first declared Canada would be seeking membership in Biden’s Indo-Pacific Economic Framework (IPEF). The U.S., Japan and Korea have backed Canada’s bid. Global Affairs Canada tells Playbook there are “continuing discussions” with the Biden administration and IPEF members. 331 days since Ottawa released its Indo-Pacific Strategy, the one that declared India a “critical partner” in the region. 42 days since Prime Minister JUSTIN TRUDEAU cited “credible allegations potentially linking” agents of India’s government in the killing of HARDEEP SINGH NIJJAR in Canada. 23 days since Hamas broke through Israel’s borders and launched attacks that killed at least 1,400 Israelis, prompting Prime Minister BENJAMIN NETANYAHU to declare war. 3 days since the United Nations voted overwhelmingly in favor of a humanitarian truce between Israel and Hamas. Canada abstained. Canada’s amendment to the resolution to name the “deliberate cruelty” of the attacks by Hamas — but not the mass suffering the world is witnessing in Gaza. It didn’t pass. | | | | A message from Google Canada:   | | |
| | TODAY'S HIGHLIGHTS | |
— Prime Minister JUSTIN TRUDEAU is in the national capital region for private meetings.
— Deputy Prime Minister CHRYSTIA FREELAND is in Ottawa for private meetings. 11:45 p.m. Foreign Affairs Minister MÉLANIE JOLY will address the Economic Club of Canada. 12 p.m. Natural Resources Minister JONATHAN WILKINSON makes a 2 billion trees announcement in Ottawa alongside Forests Ontario CEO JESS KAKNEVICIUS. 3:30 p.m. Crown-Indigenous Relations Minister GARY ANANDASANGAREE and Inuit Tapiriit Kanatami President NATAN OBED will deliver opening remarks at the Inuit-Crown Partnership Committee hosted in the Shaw Centre. 3:30 p.m. Bank of Canada Governor TIFF MACKLEM and Senior Deputy Governor CAROLYN ROGERS have a 2.5-hour block at the House finance committee. 4:30 p.m. Former Chrétien Cabinet ministers ALLAN ROCK and LLOYD AXWORTHY will be witnesses at the Senate human rights committee's study on forced global displacement. REMA JAMOUS IMSEIS, the United Nations High Commissioner for Refugees’ representative to Canada, kicks off the first block. 5:30 p.m. Treasury Board President ANITA ANAND and Official Languages Minister RANDY BOISSONNAULT headline the Senate official languages' committee’s meeting. | | For your radar | |
SEAWAY STRIKE ENDS — Labor Minister SEAMUS O’REGAN can breathe a sigh of relief.
The first strike at the St. Lawrence Seaway in roughly half a century, which tied up billions in trade in grains and other key commodities, ended Sunday evening as both sides reached an agreement at the bargaining table. The backlog of ships will start to clear this morning, as ships begin passing through the locks again starting at 7 a.m. The St. Lawrence Seaway Management Corporation and the 360 employees unionized under Unifor reached a tentative agreement a week after the strike began. — In news overnight: Unifor workers at Stellantis strike as deal deadline passes.
| | ALSO FOR YOUR RADAR | |
SHOTS FIRED IN HOUSING SPAT — Housing Minister SEAN FRASER fired off a testy statement after Metro Vancouver approved new development charges Friday that will triple fees on new construction projects.
His up-the-ante wording should perk up the attention of other mayors across Canada seeking federal housing subsidies. Fraser warns that “moving forward with significant increases in development charges” will only deter homebuilding amid “extremely challenging market conditions.” — The first jab: “Before finalizing the [Housing Accelerator Fund] funding decisions, I will be re-examining the proposed initiatives in each city’s application and will make necessary adjustments where the initiatives conflict with the position taken” by Metro Vancouver’s Board. — The spicy part: “I will be discussing with my colleagues in the federal Cabinet what conditions we may attach to other federal funding streams, including programs designed to finance community infrastructure in Canada’s cities, in order to maximize the number of homes being built across the country.” Translation: Take Ottawa’s demands seriously or the stakes ratchet up. The board was considering pushing off the fees for a year after Ottawa bristled over the proposal, but ultimately rejected the idea on Friday and is pushing ahead with the new fee structure. — Feeling strong-armed: Port Coquitlam Mayor BRAD WESThad characterized Fraser’s push against the fee hike as being all “about politics” and that any hold-up of housing accelerator funds would be like a “hostage taking.” | | | MEDIA ROOM | | |
— Global News’ MERCEDES STEPHENSON scoops on “West Block” that Canadian Special Operations Forces are in Israel helping with embassy security.
— DAVID THURTON of CBC News reports: Some MPs are calling on Ottawa to take a bigger bite out of fossil fuel companies' profits. — Ontario Premier DOUG FORD’s C$8.28-billion Greenbelt land swap scandal is about to enter a new phase, writes the Star's ROBERT BENZIE. — Abacus Data pollster DAVID COLETTO writes on substack: “Why is PIERRE POILIEVRE Pushing Bill C-278 on Vaccine Mandates?” — JASON MARKUSOFFdigs into the report Alberta Premier DANIELLE SMITH is leveraging to make her case to Albertans to jump ship from the CPP. — Alberta's Finance Minister NATE HORNER said on Rosemary Barton Live that he's ready to meet with his counterparts on leaving the CPP, CHRISTIAN PAAS-LANG writes. — Sikhs in Canada turned out in Surrey, B.C. to vote in an unofficial referendum on Khalistan held where activist HARDEEP SINGH NIJJAR was killed June 18,Canadian Press reports. — RAVI SHANKAR has a slideshow in the Times of India called “10 study abroad destinations for Indians except Canada.” — Former diplomat COLIN ROBERTSON writes for Policy Magazine about the book he recommends new ambassadors read to learn about foreign policies of Canadian prime ministers. — Former Ontario Premier DALTON MCGUINTY was on the The Herle Burly pod, and he’s as DALTON MCGUINTY-ee as you’d expect. | | | | PLAYBOOK IS GOING GLOBAL! We’re excited to introduce Global Playbook, POLITICO’s premier newsletter that brings you inside the most important conversations at the most influential events in the world. From the buzzy echoes emanating from the snowy peaks at the WEF in Davos to the discussions and personalities at Milken Global in Beverly Hills, to the heart of diplomacy at UNGA in New York City – author Suzanne Lynch brings it all to your fingertips. Experience the elite. Witness the influential. And never miss a global beat. BE PART OF THE CONVERSATION. SUBSCRIBE NOW. | | | | | | | PLAYBOOKERS | |
For POLITICO Pro s, our latest policy newsletter from ZI-ANN LUM: Gimmick vs. gimmick.
In today's news: The G7 group of rich, industrialized democracies will publish a code of conduct for developers of generative artificial intelligence, our colleagues in Europe report.
The code is voluntary — but digital ministers and leaders of the G7 countries will endorse it in an effort to nudge companies into signing up.
|  This week in the U.K., PM Rishi Sunak hopes to get Washington and Beijing talking and even — whisper it — signing a shared communiqué outlining the risks of AI. | Ian Vogler/AFP/Getty Images | Other headlines for Pro s: — The odds are against Rishi Sunak’s AI summit. He might just pull it off. — Biden takes on AI — and the tech industry. — EU carmakers chase Chinese in small EV race. — Pro Analysis: Digital trade in the Indo-Pacific economic framework. — U.S. Senate Republicans look for cover in carbon tariff push. | | PLAYBOOKERS | |
Birthdays: Celebrating today is former MP JIM HART.
Got a document to share? A birthday coming up? Send it all our way. Spotted: The PM reacting to the news of MATTHEW PERRY’s death. The actor’s mother, SUZANNE PERRY, served as press secretary to former prime minister PIERRE ELLIOTT TRUDEAU. “I’ll never forget the schoolyard games we used to play, and I know people around the world are never going to forget the joy he brought them,” JUSTIN TRUDEAU wrote. “Thanks for all the laughs, Matthew. You were loved — and you will be missed.” At World Trivia Night at the Shaw Centre: KEVIN BOSCH, LESLIE CHURCH, JACOB GLICK, MICHELE AUSTIN, KATE DALGLEISH, LIAM DALY, MATT CONLEY and CORMAC MAC SWEENEY. Liberal MP MARK GERRETSEN having a little trouble with polling on X. Sold out limited edition CPC ‘How do you like them apples?’” T-shirts featuring PIERRE POILIEVRE’s likeness; Copycats of the Conservative “How do you like them apples?” shirts for sale cropping up on other corners of the internet. Movers and shakers: The Canadian Northern Economic Development Agency has a new president: JIMI ONALIK. ROMY BOWERS is leaving her post as president and CEO of Canada Mortgage and Housing Corporation (CMHC). In January Bower will assume the role of director of the International Monetary Fund’s office of risk management. Job board: The government is looking for a new vice chairperson and member for the Independent Advisory Board on Eligibility for Journalism Tax Measures. | | On the Hill | |
8:30 a.m. Statistics Canada will release a new Canadian social survey on energy use and a report on the manufacturing sector’s 2022 energy consumption.
9:30 a.m. Mental Health and Addictions Minister YA’ARA SAKS is in Toronto to make a funding announcement and to release a renewed Canadian Drugs and Substances Strategy. A tech briefing has been scheduled to follow a media availability, rather than before reporters ask questions. 11 a.m. Canada Mortgage and Housing Corporation President and CEO ROMY BOWERS, who will soon leave her post, and Infrastructure Canada Deputy Minister KELLY GILLIS will be at the House human resources committee to brief MPs on their work. 11 a.m. The House health committee will meet to launch its study on regulatory changes for natural health products. 11 a.m. The House public safety committee meets in a three-hour session to take Bill C-20 through clause-by-clause consideration. 11 a.m. The House foreign affairs committee hears from Canada’s ambassador to Armenia H.E. ANDREW TURNER on security at the borders between Azerbaijan and Armenia. 11 a.m. The House public safety committee goes clause-by-clause through Bill C-20. 11 a.m. The House official languages committee hears from RCMP Commissioner MICHAEL DUHEME. 3 p.m. The Senate national security committee meets to study Bill C-21 with witnesses including Toronto Metropolitan University’s Indigenous Governance Chair PAMELA PALMATER. 3:30 p.m. Crown-Indigenous Relations Minister GARY ANANDASANGAREE and Inuit Tapiriit Kanatami President NATAN OBED will deliver opening remarks at the Inuit-Crown Partnership Committee hosted in the Shaw Centre. 3:30 p.m. The House finance committee meets. 3:30 p.m. The long-term impacts of pay inequity is up for discussion at the House science and research committee. 3:30 p.m. The House transport committee meets to study Bill C-33. 4:30 p.m. Former Chrétien Cabinet ministers ALLAN ROCK and LLOYD AXWORTHY will be witnesses at the Senate human rights committee. 5:30 p.m. Treasury Board President ANITA ANAND and Employment, Workforce Development and Official Languages Minister RANDY BOISSONNAULT are at the Senate official languages' committee’s meeting. Behind closed doors: The special committee on Canada-China relations meets; the House status of women committee will meet to discuss their human trafficking study; the House agriculture committee will hold a briefing with the law clerk and parliamentary counsel. | | TRIVIA | |
Friday’s answer: JAMES JEROME was speaker of the House in 1977 when TV cameras started rolling. JIM MUNSON, a former foreign correspondent and more recently retired senator, wrote in with the answer and this note:
I am so old, I fondly remember covering the Hill during the days before cameras. Imagine a packed Question Period as LINCOLN ALEXANDER squared off against PIERRE TRUDEAU. Imagine “fuddle duddle.” Imagine no prepared scripts or speeches. Imagine Press Gallery members filled every seat above the speaker. Imagine aides to ministers filled every seat above the government bench. Imagine the debates that took place. Imagine just walking onto the Hill to work. Imagine Parliament in the early ’70s Just imagine. Props also to JOHN DILLON, ROBERT MCDOUGALL, GUY SKIPWORTH, DOUG RICE, NANCI WAUGH, JENN KEAY, FRANCES DOWNEY and GEORGE SCHOENHOFER. Monday’s question: What is the significance of the number 54,288 to this date in history? Send your answer to ottawaplaybook@politico.com Playbook wouldn’t happen without: POLITICO Canada editor Sue Allan, editor Emma Anderson and Luiza Ch. Savage. Want to grab the attention of movers and shakers on Parliament Hill? Want your brand in front of a key audience of Ottawa influencers? Playbook can help. Contact Jesse Shapiro to find out how: jshapiro@politico.com. | | | | Follow us on Twitter | | | | Subscribe to the POLITICO Playbook family Playbook | Playbook PM | California Playbook | Florida Playbook | Illinois Playbook | Massachusetts Playbook | New Jersey Playbook | New York Playbook | Ottawa Playbook | Brussels Playbook | London Playbook View all our political and policy newsletters | | Follow us | | | | |  |
